# CIA

# til Comme rce and In dus tryAssoc iatio n of New Jersey Headquarter s : South 61 P ar

amus Roa d • Mack-Cali Ce n tr

e IV • Paramus , New Jersey 07652 T el : 201-368-2 100 • Fax : 201-368-3438 • www.cianj.org Trenton Office: 222 West State Street . Suite 212 • T renton , NJ 08608 • Tel : 609-695- 5900 May 11, 2015 The Honorable Anthony R. Foxx Secretary of Transportation US Departm ent of Transpo rtation 1200 New Jersey Ave SE Washington , DC 20590 Dear Secretary Foxx, On behalf of the Commerce and Industry Association of New Jersey and our 950 member bu sin esses, I am writing to expre ss my deep conce rn ove r the deterioration of the extrem ely beneficial Open Skie s policy brought about by the actions of the governments of Qatar and the United Arab Emirates (UAE). According to a recent report , three airlines from Qatar and the UAE - Qatar Airways , Etihad Airways and Emirates Airline- have co llecti ve ly received at lea s t $42 billion in subsidies, interest-free " loan s" and other unfair benefits from their ho s t governmen t s over t h e past decade . This h eavi ly s ub sid ized compet iti on by the Gulf carriers i s severe ly distorting the international market by con tr i but i ng to excess capac ity, w hich unfairly draws pa ssengers and revenue f rom U .S . a i rlines . If U .S.- ba sed carriers li ke Delta , Ameri can and United Airlines continue to lo se market share, it will lead to service cuts and ultimately American job losses . In fact, aviat ion industry experts estimate that every internationa l roundtrip flight lo st by a U.S. airline resu lts in the di sappea rance of 821 we ll -paying U . S. job s. Since their ratification in the ea rl y 1990' s, the Open Skies agreements fostered an environment of fair and healthy c ompet it io n betwe en a irlines- i mprovi ng the qu ali ty of service fo r con sumers, inc rea sing choice and overall air travel , and stimu latin g the global econo my . However without action by the U.S., this competitive balance wi l l continue to be undermined by Qatar and the UAE . Therefore , I am requesting th a t th e U .S. gove rnment open consultations w ith the two Gulf States to address these troubling developments to ensure that they adhere to the prov i si ons of the Open Skies policy to which they agreed . Additionally, the U .S. should seek a free ze o n new capacity from the Gulf carriers while these negot iations go forwa rd . Ple ase f ee l free t o contact me if you would like to di sc uss m y conce rn s about the l ong term, negative impact of the Gulf States host governments carriers' subsidies on th e · Open Skies agreements. Sincerely,



# ~L/

New Jersey's business advocate for 85 years

# CIA

# til Commerce and Industry Association o f N ew Jersey Headquarters: South 61 Paramus Road • Mack-Cali Centr e IV • Paramus , New Jersey 07652 Tel: 20 1-368-2100 • Fax: 201-368-3438 • www.cianj.org Trenton Office: 222 West State Street • Suite 2 12 • Trenton, NJ 08608 • Tel : 609-695-5900 May 11,2015 The Honorable John F. Kerry Secretary of State US Department of State 2201 C Street NW Washington, DC 20520 Dear Secretary Kerry, On behalf of the Commerce and Industry Association of New Jersey and our 950 member businesses, I am writing to express my deep concern over the deterioration of the extremely beneficial Open Skies policy brought about by the actions of the governments of Qatar and the United Arab Emirates (UAE). According to a recent report, three airlines from Qatar and the UAE- Qatar Airways, Etihad Airways and Emirates Airline- have co ll ect ive ly re ceived at least $42 billion in subs idies , interest-free " loans" and other unfair benefits from their host governments over the past decade. This heavily subsidized compet ition by the Gulf carriers is severely distorting the international market by co ntributin g to excess capacity, which unfairly draws passengers and reve nue from U.S . airlines. If U.S.-based carr iers like Delta , American and United Airlines continue to lose market sha re, it will lead to se rvice cuts and ultimately American job losses . In fact, aviation industry expe rts estimate that every international roundtrip flight lost by a U .S . airline results in the disappearance of 821 well-paying U .S. jobs . Since their ratification in the early 1990' s, the Open Skies agreements f ostered an environment of fair and healthy competition between airlines- improving the quality of service for cons umers, increasing choice and overall air travel, and st imulatin g the global economy. However without action by the U. S., thi s com petitive balance will continue to be undermined by Qatar and the UAE. Therefore, I am requesting that the U.S. government open consultations with the two Gulf States to address these troubling developments to ensure that they adhere to the provisions of the Open Sk ie s policy to which they agreed. Additionally, the U .S. should seek a freeze on new capac ity from the Gulf carriers while these negotiations go forward. Please fee l free to co ntact me if you would like to discuss my**concern~** about the long term, n egat ive imp act of the Gulf State s host governments carriers' sub sidi es on the Open Skies agreements.

Pres ident 

### N ew Jer sey's business advocate for 85 year s

# CIA

# ttl Commerce and Industry Association of New Jersey Headquarters : S outh 61 P aramus Road • Mack-Cal i Centre IV • Paramus, NewJe r sey 07652 Tel : 20 1 - 3

68-2100 . Fax: 201 -368-3438 • www.cia n j.org Trenton Office: 222 West S tate Street . Suite 212 • Trenton , NJ 08608 • Tel: 609-695-5900 May 11,2015 The Honorable Penny Pritzker Secretary of

**~ommerce** US Department of Commerce 1401 Constitution Ave . , NW Washington, D.C. 20230 Dear Secretary Pritzke r , On behalf of the Commerce and Industr y Association of New Je rse y and our 950 member businesses, I am writing to express my deep concern over the deterioration of the extremely beneficial Open Skies policy brought about by the action s of the governments of Qatar and the United Arab Emirates {UAE). According to a re ce nt report , three airlines from Qatar and the UAE- Qatar Airways, Etihad Airways and Emirates Airline- have collectively received at least $42 billion in subsidies, interest -free "loans" and other unfair benefits from their host governments over the past decade. This heavily subsidized compe titi on by the Gulf carriers is seve re ly distorting the internati onal market by co ntribut i ng to excess capacity, which unfairly draws passengers and revenue from U .S. airlines . If U.S . -based carriers like Delta, American and United Airlines continue to lose market share, it will lead to service cuts and ultimately American job losses. In fact , aviation indu stry experts estimate that every international roundtrip flight lost by a U.S. airline results in the disappearance of 821 well-paying U.S . jobs. Since their ratification in the early 1990's, the Op en Skies agreeme nts fostered an environment of fair a nd healthy competition between airl ines- improving the quality of service for cons umers, inc reasing choice and overall air travel , and st imulating the global economy. However w ith out action by the U.S., th is competitive balance will continue to be undermined by Qatar and the UAE. Th erefo re, I am requesting that the U.S. government open cons ultation s with the two Gulf States to address these troubiing developments to ensure that they adhere to the provisions of the Open Skies policy to which they agreed . Additionally, the U .S. shou ld seek a freeze on new capacity from the Gulf carriers while these negotiations go forward. Please feel free to contact me if you would l i ke to discuss my

**concern~** about the lon g term , negative impact of t he Gulf States ho st governments carriers' subsid ies on the Open Skies agreements.

President 

### New Jer sey' s business advocate for 85 years